HowWe AreEcosmart™

Sustainability Is Our Commitment

At Stanley Black & Decker we are embedding sustainable thinking in everything we do—design, manufacturing, distribution, service and more. We are vigilant about our sustainability initiatives and we place a priority on maintaining an open dialogue with all of our stakeholders. As such, we have been consistently recognized as a standout company with respect to our environmental, health and safety practices. ECOSMART™ emphasizes our commitment to continue our pursuit of a sustainable future.

“We are committed to improving the sustainability of our operations, our products and our communities while helping our suppliers and our customers to do the same. We call this ECOSMART,™ and it means we are advancing global stewardship principles across our entire value chain.”

John F. LundgrenChairman & CEO

Our ProductsEmbedding ECOSMART™ Into Our Products

ECOSMART™ is integrating sustainable considerations into our product design process to assist in reducing the environmental impacts of our production processes and our products without compromising quality and value.

Ecosmart™ and our Brands

ECOSMART™ emphasizes our company-wide sustainability efforts both internally and to the public. In late 2015 we began to share sustainability with our customers on select BLACK+DECKER and DEWALT product packaging through the use of QR codes and the ECOSMART™ brand trademark. Our immediate focus is to inform our consumers through improved website enhancements about sustainability at Stanley Black & Decker as well as share project-specific ideas to help our consumers design sustainability into their everyday lives.

Life Cycle Assessments

In 2015, we increased our Life Cycle Assessment methods to identify the environmental footprint and environmental impact of our products. This approach allows us to identify sustainable opportunities for improvement, highlighting material choice, supply chain and energy opportunities that may otherwise not have been realized. We keep sustainable product performance at the forefront of customer satisfaction, in line with other attributes such as quality, performance and value.

As part of the European Commission’s Product Environmental Footprint Pilot Project, we used the category rules and tools to perform a pilot project on one of our battery charger systems. Upon completion, the report will be presented to the European Commission—keeping Stanley Black & Decker at the forefront of legislation development in the field of Life Cycle Assessment and Product Environmental Footprint.

Battery Take Back Program – In 2015, our Buenos Aires, Argentina Distribution Center initiated a battery recycling project, collecting Stanley Black & Decker brand batteries from authorized service centers. The collected batteries are sent to a recycling center to be processed, avoiding potentially hazardous materials from entering local landfills. An estimated 3,500 Kg of batteries were collected in a six-month period from 50 contracted service centers. The project will be expanded next year to include all Stanley Black & Decker customers across Argentina who wish to recycle batteries.

Our PeopleEmbedding ECOSMART™ in Our Culture

ECOSMART™ is instilling environmental and safety accountability in our people—while creating a paradigm shift in how we attract, develop and retain the next generation of talent.

Committed to Building a Better Tomorrow

BUILD HOMES – Habitat for Humanity
We support Habitat for Humanity’s mission to create a world where everyone has a safe, decent place to live. In 2015, we contributed to more than 15 Habitat builds and rehabilitation efforts around the world with monetary and tool donations. And our employees gave their time as well, helping to build homes for their communities.

BUILD SKILLS – WorldSkills
In 2015, we were a major sponsor of the world’s largest global skills competition in Sao Paulo, Brazil. WorldSkills brought together more than 1,000 student competitors and 250,000 spectators. Our STANLEY, DEWALT, FACOM and BLACK+DECKER brands were in the hands of every student competing in building and construction skills.

BUILD MIRACLES – Children’s Miracle Network
Our “Racing for a Miracle” program is our most successful campaign within our NASCAR partnership. Yearly, this program pledges $100,000 to Children’s Miracle Network hospitals and provides once-in-a-lifetime opportunities for patients to meet our NASCAR team. To date, we have contributed more than half a million dollars to help member hospitals and local children.

REBUILD COMMUNITIES – ToolBank USA
In 2015, we helped ToolBank USA open their 10th regional affiliate site to loan tools to community nonprofits. This year, we made a pledge to donate more than $1 million worth of tools to equip all 10 ToolBank locations around the country. Additionally, we helped stock and deploy the ToolBank Disaster Services truck to locations, including South Carolina, Texas and Illinois, where natural disasters took a devastating toll.

BUILD PRIDE – Wounded Warrior Project
Since 2013, we’ve donated nearly $1 million to this organization to support their efforts in empowering, honoring and caring for injured service men and women. Nearly every division of our company has leveraged this partnership to raise awareness and support for this program.

Stanley Black & Decker’s CharitableImpact By the Numbers

+19%

Total Impact:We increased our financial giving by 19% in 2015.

+30%

Total Employee Impact:Our employees contributed 30% more to charities around the world in 2015 than in the previous year, and nearly doubled their financial support from six years ago.

$6M

For housingand rebuilding:Assisted 200,000 volunteers with more than $6 million in borrowed tools value.

50

Homes:Completed home builds for more than 50 families, including rehabilitating houses to make them more accommodating for returning injured veterans.

300K

STEM STUDENTS:Provided STEM (Science, Technology, Engineering and Math) and vocational programming to more than 300,000 students around the world. 2,000 students were provided support to participate in STEM and innovation competitions.

$1.5M

FOR VETERANS:Sponsored benefit events for more than 3,000 veterans, families and friends to raise awareness, raising $1.5 million.

+18%

For 3 hospitals:Following three hospital expansions that we funded, those facilities averaged a 18% increase in patients.

This program is specifically designed to drive above and beyond performance as we continue to achieve world-class levels on our standard metrics.

50% decrease in global injuries related to the use of powered industrial vehicles in 2015 versus 2014

Site-Specific Highlights

Improving Flow to Increase Safety – In 2015, our Mexico City Distribution Center optimized the location, flow and amount of inventory to reduce worker movements and improve storage ergonomics. The team was able to optimize the layout in the Distribution Center resulting in a 30% reduction in employee total travel time while filling orders and increasing efficiency resulting in a 50% reduction in customer claims.

Recycling Waste to Make Home Décor – The STANLEY Security Indianapolis facility continued its partnership with Crossroads, a division of Easter Seals that employs people with disabilities. Crossroads is able to process waste polystyrene into compacted bricks for reuse. Since the project's inception, all polystyrene trays have been diverted from the landfill.

~10,450 pounds of polystyrene waste diverted from landfill

Our PlanetEmbedding ECOSMART™ in Our Operations

ECOSMART™ is identifying environmentally related strategies to ensure we stay ahead of climate-related influences and reduce the environmental impact of our operations.

Find & Eliminate

Find the environmental impact or wasteful activity and eliminate it! The Find & Eliminate program is aligned with our annual company goals for energy, waste and water reductions and is designed to allow our sites to identify specific projects aimed at those reductions. All of our facilities develop a three-year project plan to achieve their sustainability goals. These projects are then presented to both operational leadership as well as Global EHS.

Water Scarcity

Our global water strategy has been designed to improve our water discharge quality, reduce water consumption and better prepare us for the future effects of water scarcity. Our strategy includes managing where we will expand operations, acquire companies or build new facilities to ensure water scarcity concerns are understood and addressed. In 2015, we charted our manufacturing and distribution network using the World Resources Institute Aqueduct Water Risk Atlas tool.

~70% reduction in water intensity since 2009

External Management SystemCertifications

Energy Management – In 2015, two of our European facilities became the latest to have successfully achieved the ISO 50001 certification in Energy Management: our Tools & Storage facility in Besançon, France, which manufactures STANLEY tape measures and saw blades, and our Engineered Fastening facility in Warrington, U.K.

Supplier Social Accountability andSustainability Performance

In 2015, we extended our ECOSMART™ philosophy to include our whole supply chain. We encourage our suppliers to advance sustainability processes that not only benefit themselves, but can be passed along the entire supply chain. The goal of our audits is to identify opportunities for improvement and to help our suppliers make beneficial process improvements for energy, waste and water reductions.

180 of our Asian-based suppliers audited to capture and enhance their sustainability and EHS performance

CDP Supply Chain – For a number of years, Stanley Black & Decker has participated in the Carbon Disclosure Project (CDP). As we move into 2016, we will expand the scope to include our suppliers. Our goal is to contribute further to CDP by encouraging our own suppliers to complete the CDP Supply Chain module. This approach will add more of our supply chain into this core process, raise sustainability awareness and drive process improvement across our business.

ECOSMART™ Office

2015 included the launch of our ECOSMART™ Office Initiative, designed to create a sustainable eco-friendly office environment. As an ongoing effort to reduce our paper consumption and toner usage, we encourage colleagues to implement "Smart Printing Strategies" into their daily work activities.

LED Lighting Upgrades – Our Tools & Storage facility in Shenzhen, China upgraded to new LED lighting in their “U” cell assembly lines, improving lighting quality for employees and producing an annual savings of 249,600 kWh. The Hydraulics facility located in Milwaukie, Oregon performed a site-wide upgrade to LEDs resulting in annual savings of 903,936 kWh in 2015, a reduction of 343 tons of C02. The Milwaukie plant is one of only 12 businesses in the state that have upgraded to LED lighting.

Renewable Energy Source – The newly constructed waste storage area at our DEWALT factory in Perugia, Italy includes a photovoltaic roof that will generate 37.1 kW of electrical energy (140 panels of 265 W/each). Thanks to this effort, the facility is favorably positioned to achieve ISO 50001 certification in 2016, in addition to maintaining its three existing ISO certifications.

ECOSMART™ Scorecard

We are sharing our Year 2020 targets and 2015 ECOSMART™ Scorecard below to further our ECOSMART™ commitment to reduce impacts on our people, our planet and our products.

Year 2020 Targets

People: Drive the prevention of all global injuries with a goal of zero life changing injuries by Year 2020.

Product: Set a global standard by achieving external EMS certifications at 65% of our manufacturing and distribution center sites by Year 2020. Improve product sustainability and social accountability with the participation of select partner suppliers in CDP by Year 2020.

Environmental Intensities...

Energy(a)(KBTU / $ Thousand)

Carbon(a)(Lbs / $ Thousand)

Water(b)(Gal / $ Thousand)

Waste(c)(Lbs / $ Thousand)

Safety Injury/Illness Rates...

Total Recordable Rate(d)(Incidents / 100 Employees)

Lost Time Rate(d)(Incidents / 100 Employees)

Management System...

CDP Scoring(e)(Disclosure/Performance)

Audits(f)(% MFG|DC)

Certifications(g)(% MFG|DC)

Safety Data...

2015

2014

2013

2012

2011

Total recordable injury | illness

356

470

431

496

565

Lost time injury | illness

102

148

113

159

194

Lost days due injury | illness

4,090

4,953

3,561

5,322

5,525

Work hours in thousands

107,099

108,201

102,860

102,443

93,791

Total recordable rate

0.66

0.87

0.84

0.97

1.20

Lost time incident rate

0.19

0.27

0.22

0.31

0.41

Chart Notes...

(a)

Energy intensity in kilo British thermal units, CO2e carbon dioxide equivalents intensity in pounds, both per 1000$ production costs.

(b)

Water consumption in gallons per 1000$ production costs.

(c)

Waste intensity in total generation pounds per 1000$ production costs.

(d)

Total recordable rate and Lost time rate = # of applicable incidents per 100 employees per year.